Offering your child a stable environment in which they can thrive in and eventually become an independent adult is something most parents want. Things become twice as difficult when you are a parent with a child who has a disability.
Finding ways to plan for their future by creating financial safety nets is the first step to help protect and provide for them even when you are no longer around to do so. These are a few things to consider when financially planning for a child with special needs.
Tracking your budget
Having a child with disabilities means that you will need to create a budget that needs to be carefully tracked and stretched without causing a financial strain. Speaking to a financial advisor can help you navigate your way around covering various expenses, especially emergency expenses. You will also need to estimate the lifetime costs that come with having a child with disabilities. Consulting your doctor about your child's disability is important as it can give you access to resources and allow you to plan adequately for things such as structural changes to your home, therapy costs, and special needs equipment.
Medical GAP insurance
Providing your child with the best care is something that every parent wants. Having a medical aid that caters towards your child's need is crucial. Always remember to compare your options to find one that will be best suited to cover the bills. Taking care of your child's medical needs, especially if they have special needs can require co-payments which can be costly. Children with special needs tend to need frequent doctor and specialist visits which can soon add up, even if you have an emergency savings account in place. GAP insurance is created for you to handle various medical costs that could require a co-payment, giving you space to breathe financially.
Life insurance
Every parent hopes to leave their child with a future in which they can thrive in. Protecting their future financial needs is something that many parents stress about, but there are ways in which you can protect your child's needs, even if you are no longer alive to do so. Having a life insurance policy can ensure that they are adequately covered.
Beneficial Tax breaks
The South African Revenue Service (SARS) does offer some beneficial tax breaks for people who have disabilities. You are entitled to claim benefits in the form of additional medical expenses tax credit. Parents can also deduct expenses that are directly related to their child's disability from their total taxable income. For example:
Educational fees
Carer fees
Insurance fees
Alterations to your home
Specialised therapy
There are also government provisions in the form of Care Dependency Grant’s, and Disability Grants that can aid parents that are financially struggling. However, relying solely on these will not adequately cover the range of expenses that come with caring for your child. Always remember to assess your financial needs based on your situation by consulting a financial advisor who can help you find a healthy and realistic way to manage your finances.
